Authorizes a tax credit for compensation of local businesses who provide qualified employees to serve as instructors at certain Missouri institutions
The bill stipulates that for tax years beginning on or after January 1, 2025, a qualified taxpayer can claim a tax credit up to $5,000 or the actual amount of compensation paid to a qualified instructor, whichever is less. Each taxpayer can claim a maximum of five credits annually. The cumulative amount of tax credits granted under the bill shall not exceed $500,000 per fiscal year, thus creating a capped but potentially impactful incentive for local businesses to hire educational staff. This is expected to promote the development of a skilled workforce in Missouri.
House Bill 611 proposes a new section to Chapter 135 of the Revised Statutes of Missouri, providing a tax credit for qualified taxpayers who employ career and technical instructors in certain registered institutions. This bill, introduced by Representative Wilson, defines various terms such as 'qualified taxpayer' and 'qualified career and technical instructor' to specify who can benefit from this legislation. The main intent is to encourage local businesses to support educational initiatives by providing financial relief through tax credits based on the compensation paid to these instructors.
One notable point of contention surrounding this bill may arise from the allocation of tax credits and the criteria set for eligibility. Critics may argue whether the $500,000 cap on total credits is sufficient to support the numerous businesses that could potentially benefit from hiring qualified instructors. Additionally, the non-refundable nature of the credits could pose challenges for small businesses unable to absorb the upfront costs of hiring instructors. Proponents, however, would likely point to the long-term benefits of fostering a more educated labor force and the importance of collaboration between educational institutions and local businesses.